Last updated on SEPTEMBER 06, 2016
Applies to:Oracle Service Contracts - Version 12.1.3 to 12.1.3 [Release 12.1]
Information in this document applies to any platform.
If the tax rate that is applied to a service contract has a start date that is after the contract start date, then the tax on the contract is not calculated correctly.
When the contract is billed, the tax is re-calculated in Receivables, and any invoice that is generated after the tax rate is applied will have the correct tax, but the contract will continue to show the tax incorrectly.
Steps to reproduce:
1. (R) Tax Manager (N) Tax Configuration > Tax Rate
- Create a Tax rate with a start date of 01-Jan-2014 that would be applicable for the contract.
2. Author a service contract that starts on 01-Sep-2013 with a Duration of 1 Year.
- Tax shown on the contract header and line is zero (assuming no other Tax rates exist).
The expected result would be that an amount equivalent to the portion of the duration where the Tax Code is in effect would appear on the contract.
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